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vanarnam5713
Level 1

As a Sole proprietor, I chose to pay myself as an employee instead of doing an owner's draw. Can I turn off the employer deductions?

 
2 Comments 2
Rose-A
Moderator

As a Sole proprietor, I chose to pay myself as an employee instead of doing an owner's draw. Can I turn off the employer deductions?

Yes, you can turn off the employer deductions in QuickBooks Online, vanarnam5713.

 

You'll need to mark the Exempt option on the employee's profile so you'll not be deducted.

 

Here's how:

 

  1. Go to your profile or employee's profile.
  2. Click the pencil icon beside Pay and go to number 5 What are Employee's withholdings?
  3. Go to Federal filing status and choose Exempt.
  4. Hit Done.

I'm leaving you some recommended articles to help guide you with editing employee's deductions as well as contributions in QuickBooks:

 

 

If you require more information about the employee's and employer's deduction, please let me know. I'd be happy to help.

Rustler
Level 15

As a Sole proprietor, I chose to pay myself as an employee instead of doing an owner's draw. Can I turn off the employer deductions?

The problem with your choice to pay yourself as an exempt employee is that payroll makes the total of salary payments an expense.

 

And for a sole proprietor, or partner in a partnership, that is NOT true.  Value you take from your company is NOT an expense, it is an equity draw.  An audit is going to have an issue with that choice.

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